WEEKLY REVIEW

Document Type: 
Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP85T00875R001000080012-6
Release Decision: 
RIPPUB
Original Classification: 
T
Document Page Count: 
31
Document Creation Date: 
December 27, 2016
Document Release Date: 
May 11, 2010
Sequence Number: 
12
Case Number: 
Publication Date: 
March 7, 1975
Content Type: 
REPORT
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PDF icon CIA-RDP85T00875R001000080012-6.pdf2.92 MB
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25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/01/09: CIA-RDP85T00875R001000080012-6 Too Beast ~ekly Review Top Secret Copy N2 650 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/01/09: CIA-RDP85T00875R001000080012-6 1 Declassified in Part - Sanitized Copy Approved for Release 2012/01/09: CIA-RDP85T00875R001000080012-6 CONTENTS (Bfarch 7, 1975) 1 The Middle East: Guarded Optimism EAST ASIA PACIFIC 4 Cambodia: Life Line Threatened 4 Indochina: New Soviet Interest 5 Vietnam: Fighting Increases 6 Australia: Election Nerves 7 China: The New C: mpaign 9 China: More Missi!e Coats to Strait L~;'.,, I i _;.1? '1!~ Iii 17Ce. iel; )rt ~-,ncl ,Li~: 3i/Jr; ?li\' ;ordinate with of pre f) zrcrt ,`'' )itiCr f Faun :rr)IC: ?-Irch. thfee COffice of ;tt and C:arEO,~r:y, '~ilC. r..r'djftr (ii Cempr:he.n:.ivo trci;c1 ,ni f / ref : ) l)!; i r aei;/ o pe .ini F oft .r e li 15 Yugoslavia: New Soviet Equipment 16 Italy: Party Youth Defy Fanfani 17 Portugal: Cautious Optimism 18 Turkey: Political Woes Continue MIDDLE EAST AFRICA 25X1 INTERNATIONAL WESTERN HEMISPHI.CRE 1S+ Ethiopia: Land Reform Announced 20 Rhodesia: New Roadblock 21 Violence in Lebanon 22 Jordanians to Oman 22 Iran: Dropping a Facade 23 India and the Big Powers 24 Foreign Investment: The West Tightens lip 25 OPEC: Maintaining Gains 26 Latin America: Reactions to Kissinger Speech %7 Cuban Economy on the Upswing 28 Peru: Politics of Succession 29 Argentina: Terrorists Target US Citizens Comments and queries on the contents of this publication are welcome. They may be directed to the editor of the Weekl 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/01/09: CIA-RDP85T00875R001000080012-6 Declassified in Part - Sanitized Copy Approved for Release 2012/01/09: CIA-RDP85T00875R001000080012-6 l' rr { i ` rr t?rc 3 ~5 t ` ) ~ i" 1 Y (\ The political and military actions of IC;rael and the Arab front-line states during the past week suqgest that they hope and expect further steps toward peace from Secretary Kissin ger's current visit to the Middle East. In spite of this optimism, there h&s been no relaxation of m`li- tary tensions. Egypt, presumably to underscore the need for early progress in negotiations and to prep? for the possibility of renewed hostili- ties in the future, is continuing efforts to aug- ment and consolidate its military dispositiorc along the Suez. Canal. The Israelis have reacted to this activity only with public expressions of concern. In the brief period since Secretary Kis- singer's last trip to the area, Egyptian media have spoken daily-and with considerai le opti- mism-of the prospects for concluding another disengagement agreement during the Secretary's current visit. President Sadat drew attention to one area of flexibility by suggesting, albeit obliquely, that the US can serve as a guarantor of Egypt's pledge to refrain from war so long as negotiations rer ain alive. Sadat Also demon- strated his commitment to the negotiating pro- cess and his crpectation that the results will justify the risks he is taking by publicly defend- ing Egypt's right to continue disengagement talks against vigorous criticism from the Pales- tinians. To reassure the other Arabs, Sadat has claimed that he will not grant any political con- cessions to gain a further Israeli withdra',ral. In the same vein, Egyptian press commentators and government officials have stressed that another Egyptian-Israeli agreement will not end Egypt's obligations to the other Araos. The Syrians, aware of Cairo's pivotal role in negotiation, have tried to keep the pressure on Sadat in hopes of preventing him from con- cluding an agreement with Israel that does not in some way take i IL,,) account Syrian and Pales- tinian interests. At the same time, Syrian For- eign Ministry officials are privately holding to th positive note struck by President Asad when he said in an interview published last week thL; Damascus is ready, if and when i;ie terms are right, to sign a formal peace treaty with Israel. The Syrians probably hope this will encourage Israeli leaders to consider a further withdrawal on the Golan Heights as soon as the next Sinai accord is reached. For bargaining purposes, at least, Asad is still demanding a uniform Israeli withdrawal alon;t the length of the current dis- engagernnnt line; he continues to reject the idea of a more limited pullback south of al- Qunaytirah. Israeli Prune Minister Rabin, meanwhile, has formed a study group at the sub-cabinet level to consider options and to draft working papers covering a second-stage Israeli-Egyptian agreement. The five-man group reportedly is focusing on options for a broad agreement that would involve an Israeli pullback from the Gidi and Mifla passes and the Aou Rudays oil fields. Page 1 WEEKLY REVIEW Mar 7, 75 Declassified in Part - Sanitized Copy Approved for Release 2012/01/09: CIA-RDP85TOO875RO01000080012-6 _,_ Declassified in Part - Sanitized Copy Approved for Release 2012/01/09: CIA-RDP85T00875R001000080012-6 Rahin faces considerable opposition to any such agreement within his government and among the public. Defense Minster Peres has said that a straightforward Egyptian undertaking to abandon war against Israel will be necessary before Tel Aviv can satisfy Cairo's demand for a pullback front the passes and the oil fields. The rightist Likud bloc, with wide public support, is planning a demonstration in Tel Aviv on March 8 to protest any concessions by Israel that are not accompanied by a formal peace agreement. Egyptian-Palestinian Cispute Leaders of the Palestine Liberation Organi- zation were thrown off balance by Sadat's un- characteristically strong reaction to their policy statement of February 26, which condemned step-bystep negotiations. They have been mov- ing caitiously this week to repair the damage to Palestinian-Egyptian relations. The Palestinians are still leery of another agreement between Egypt and Israel, however, and are continuing quiet efforts to marshal Arab support for their position. PLO delegations .re visiting eight Arab capitals. A PLO spokesman said on March 3 that Faruq Qaddumi, head of the PLO political department, will lead a delegation to Cairo in the "near future" to meet with Egyptian For- eign Minister Fahmi. The group can be expected to minimize the importance of the offending PLO statement and to argue that the Pales- tinians were condemning the US rather than Egypt. Palestinian broadcasts from Cairo have already attempted to explain that the PLO was nct attacking Egypt, and have claimed that both sides have agreed to "contain the crisis for the sake of Arab unity." A number of second-level Palestinian leaders have spoken candidly in puh- lic of the need for a return to normal relations with Egypt. President Sadat will he meeting with Secre- tary Kissinger in Aswan when the Palestinians are expected to arrive in Cairo, and he will probably not meet personally with the delega- tion. Sadat has given no sign that he has backed down from his demands that the PLO either RAID ON TEL AVIV On the night of March 5, mecnbers of PLr) leader Yasir Arafat's Fatah group, coming from the sea, mounted a spectacJlar raid on Tel Aviv, Israel's largest city. At least ;3 persons were killed in the incic ent, including, according to press reports, seven of the eight fedayeen. In a tall< with news- men on March 6, the leader of Fatah's ter- rorist Black Set..tember Organization linked the operation with Secretary Kiss'nger's ii,it to the Middle East. He indicated that the Palestinians' purpose was to empha- size that peace in the area is unattainable without their participation. The raid should have no adverse effect on Israeli-Egyptian negotiations. Official statements ;ssued b} both partie3 empha- sized that efforts to reac;i a peaceful solu- tion must co:itinue. The incident will, how- ever, reinforce Tel Aviv's determination to exclude the PLO from any peace negotia- tions. More irr rnediately, the Rabin govern- ment will be under strong pressure to strike a ainst Palestinian bases. withdraw its policy statement or send the entire PLO executive committee to Egypt to iron out Egyptian-Palestinian difference;. The Qaddumi visit, however, will probably lead to a reduction of tensions and clear the way for a subsequent meeting between Sadat and PL.O chairman Yasir Arafat. Arafat has so far avoided nuhlic comment on the contretemps with Egypt. He presumably believes that Palestinian dignity requires him to avoid a public apology, and that he must protect his own position by denying his more radical colleagues the opportunity to brand him a col- laborator in Sadat's dealing; with the US. Arafat may also believe that the current hue and cry puts pressure on Sadat to keep Palestinian in- terests in mind during the present round of negotiations. Although Arafat is suspicious of the step-bv-s+ o tactics employed by Sadat, he still hope', the Egyptians can cone up with something concrete for the Palestinians. ,);v -i 25X1 Page 2 WEEKLY REVIEW Mar 7, -15 Declassified in Part - Sanitized Copy Approved for Release 2012/01/09: CIA-RDP85T00875R001000080012-6 Declassified in Part - Sanitized Copy Approved for Release 2012/01/09: CIA-RDP85T00875R001000080012-6 so far as to tell he Egyptians and the Syrians that, while they still prefer moving the nego- tiations ;o Geneva, Moscow will not obstruct Secretary Kissinger's efforts. Sadat Moscow probably calculates that if a new Sinai disengagement is worked out, the next. step in the negotiating process would have to involve Syria. The Soviets probably believe that the Syrians will be much more likely than the Egyptians to bring them into the negotiating process and may think that the US will be interested in :-iaving Moscow use its influence in Dan,ascus on behalf of a settlement. At a minimum, Brezhnev and his regime will he better able to save face from what has been a protracted bad period for the Soviets in the Middle East. The durability of the present So- viet position, of course, will depend on progress in the talks and the role Moscow is, in fact, allowed to play. Meanwhile, tl.e Soviets are taking scene steps to keep their relations with Cairo which are fraught with suspicion and recriminations- from deteriorating any further. Last month, they resunw_; shipments of fighter aircraft to Egypt-the first deliveries since 1973. About tee, MIG-23s and at least four SU-20 Fitter-C fighter/bombers arrived in Alexandria in Febru- arv, but hhecause the contracts for these aircraft were signed prior to the 1973 war, the deliveries do no'. satisfy President Sadat's demands for a ne% arms agreement. Since last Augur., Moscow has also been delivering spare parts, ammuni- tion, and ground support equipment to Egypt. F,^tual and anticipated Soviet deiiveries, how- ever, will not compensate for Envnt'c 1 Q71 war Should the Egyptian efforts ultimately pro- duce nothing, or if the Palestinians are excluded from the negotiating process, Arafat would probably speak out forcefully against any agree- ment with Israel and endorse an increase in fedayeen terrorism. The PLO leader may alrea Moscow Maker the Best of It The Soviets are now saying privately that they will not oppose a new Egyptian-Israeli dis- engagemen' agreement and are even claiming that they are actively working to abet the peace negotiations. Moscow's public statcmcnts show that it still resents US domination of the nego- tiations, but it ha:. apparently concluded that it cannot block the present process and that it is better for the Kremlin to cast its lot with the discussions-and claim some rile for their suc- cess-th,.n to remain on the sidelines. The Egyptian and Syrian ambassadors in Moscow have ascribed the new Soviet attitude to the meeting of Secretary Kissinger and For- eign Minister Gromyko in Geneva two weeks ago. Another knowledgeable Arab diplomat has said that after the Geneva talks the Soviets went Orly l 25X1 25X1 2bX1 Page 3 WEEKLY REVIEW Mar 7, 75 Declassified in Part - Sanitized Copy Approved for Release 2012/01/09: CIA-RDP85T00875R001000080012-6 Declassified in Part - Sanitized Copy Approved for Release 2012/01/09: CIA-RDP85T00875R001000080012-6 Phnom Penh's worst fears were realized this week as the Khmer Communists began artil- lery attacks against Pochentong airport, briefly halting the vital US airlift. The she lings fol- lowed the Communists' capture of the town of Toul Leap, which allowed them to move cap- tured 105-mm. howitzers within seven miles of the airport. At week's end, government forces launched an all-out effort to retake Toul Leap before the insurgent artillery eods the US airlift and forecloses Phnom Penh's last hope for con- tinuing resupply. asserted that the agreement had been reached white he was in Hanoi in mid-February. Pri- vately, Sihanouk elaborated by saying that North Vietnamese Premier Pham Van Dong and Defense Minister Giap had agreed to facilitate the transshipment of military equipment pro- With governfiient attention focused west of Phnom Penh, other Communist uni.s have been edging toward the capital from the northeast. Government troop have lost four riverside posi- tions in this area, and insurgent mortar and recoilless-rifle crews are now within range c f the main navy headquarters. Rockets fired from the Mekong River's east bank and from elsewheie around the capital continue to take a toll of civilian lives. Communist attacks against government holdings farther south along the Mekong are also continuing without letup. Navy convoys from Phnom Penh are still getting through to the beleaguered enclave at Neak Luong and the re- maining beachheads on the lower reaches of the river, but at considerable cost: two landing craft and a patrol boat were lost this week. The navy's Mekong flotilla has been reduced by half since the beginning of the year, and military leaders have now postponed indefinitely any further efforts to reopen the river in order to conserve resources for the defenses of Phnom Penh. In a press interview last week, Prince Siha- nouk claimed that Hanoi had agreed to increase its arms deliveries to the insurgents in response to the US airlift to Phnom Penh. The prince The Soviets have sent Deputy Foreign Min- ister ; iryubin on a hastily arranged trip to Indo- china for a firsthand look at the situation. Soviet army chief of staff Kulikov was also in Hanoi in December, ostensibly for the celebra- tion of the North Vietnamese army's anniver- sary. Presumably, Kulikov sounded out the North Vietnamese at that time regarding their military intentions in South Vietnam during the dry season. Firyubin almost certainly covered this same ground, particularly in view of signs that Hanoi is readying a new phase of its dry season campaign in South Vietnam. Cambodia-which did not loom so large in December-was probably high on Firyubin's agenda. In addition to getting a better apprecia- tion of the situation, and of how Hanoi and the Khmer Communists see it developing in the coming weeks, Firyubin may have sought to place Moscow ire a position to exert some influ- ence in the event of a complete Communist victory in Cambodia. Until recently, the Soviets were openly _,tating that a military solution in Cambodia was not possible and were urging negotiatior.s. Now they find themselves having diplomatic relations with the Lon Nol government, weak ties with the Khmer Communists, and tittle prospect of working with Sihanouk, who i endent on Peking. Page 4 WEEKLY REVIEW Mar 75 Declassified in Part - Sanitized Copy Approved for Release 2012/01/09 : CIA-RDP85T00875R001000080012-6 , . Declassified in Part - Sanitized Copy Approved for Release 2012/01/09: CIA-RDP85T00875R001000080012-6 The surge in fighting in the central high- lands this week suggests that the North Viet- namese spring campaign has started in that area. Communist units attacked and overran several outposts in Kontum and Pleiku provinces and interdicted strategic Highway 19, which links the highlands to the coast. Two of the govern- ment's important air bases-at Pleiku and at Phu Cat in Binh Dinh Provirt:e-were shelled. Stepped-up attacks were also reported in the northern provinces and north of Saigon, but these could have been in response to a recent increase in South Vietnamese military opera- tions. NORTI? VIETNAM Demililnriud Z.- The The government's first task in the high- lands will be to reopen Highway 19 between Pleiku City and Qui Nhon. The Communists have succeeded in destroying at least nine bridges and culverts, and have overrun two fire bases guarding important mountain passes; they apparently plan to step up the pressure gradu- ally against the two highland capitals-Pleiku and Kontum-while keeping the highway cut. If Route ' 9 stays closed for any significant period of time, the government would be hard pressed to airlift sufficient supplies to hold these two capitals. Even with the highway open, the South Vietnamese face a difficult situat''on in the high- lands. Kor turn City is especially vulnerable. It is the last remaining stronghold in Kontum Prov- ince and depends upon Highway 14 from Pleiku City for resupply. The Communists can easily cut this road, and it would be difficult for the city's small airfield to handle the number of flights needed to resupply the garrison by air. The new fighting in the highlands has caused the South Vietnamese regional com- mander to defer earlier plans to shift govern- ment units. Originally, parts of a division were to be moved south from Pleiku to the Darlac- Quang Duc province border area to offset the suspected relocation of a North Vietnamese divi- sion. The commander now believes that not only will the government division be needed in Pleiku and 'contum, but that additional units should be brought in from the coast. SOUTH VJ,CTNAM Page 5 WEEKLY REVIEW Central ,. I(ontum. Highlands ,' Qm Nho eclassified in Part - Sanitized Copy Approved for Release 2012/01/09: CIA-RDP85T00875RO01000080012-6_= Declassified in Part - Sanitized Copy Approved for Release 2012/01/09: CIA-RDP85T00875R001000080012-6 Much of the manpower has already arrived, and other troops in the pipeline should reach their destinations over the next few weeks. The new troops appear to be more than sufficient to replace Communist losses and strengthen units in preparation for new fighting. During the first three months of the cur- rent dry season, the North Vietnamese concen- trated on moving manpower to the provinces around Saigon and to the highlands. Since mid- February, troops have been going to the north- central coast for the first time since last sum- mer. As the dry season progresses, it is likely that Hanoi will lessen the troop flow to the southern areas and send an increasing number to AUSTRALIA: ELECTION NERVES Even though national elections. are not def- initely in the cards, the edginess of both the Labor government and the opposition coalition was clearly evident last week in a series of parlia- mentary sessions that were exceptionally dis- orderly even by Australian standards of hurly- burly. During one prolonged uproar, the govern- ment forced the resignation of its own speaker of the House of Representatives. At one point in the debate, Prime Minister Whitlam, who felt the speaker had been ineffective in handling opposition needling of a cabinet minister, be- littled him within earshot of opposition mem- bers. Another indication of Whitlam's recent testiness over his government's precarious politi- cal position has been his frequent petty denigration in public of opposition leader Billy Snedden. 25X1 During the parliamentary hassle over the House speaker, some Laborites openly showed dismay over what the\ considered the govern- ment's undignified behavior. Three cabinet members abstained on a government motion that reflected adversely on the speaker's compe- tence. This unusual public break in traditionally tight party discipline could have ominous impli- cations for Labor Party unity in the event of an electoral campaign. The government is also increasingly frus- trated by its minority position in the upper house. The Senate.last week voted down eight bills the administration regards as essential. This gives the government legal grounds for dissolving parliament and calling elections. Even though the government's popularity has recovered slightly from an all-time low, Labor is still not anxious to go before the voters. Nor is the Liberal-Country opposition, despite its pos- turing, sure that it wants to take on responsibil- ity at this time for economic problems that have no easy solutions. The prospect is thus for con- tinuing bluster but no immediate moves for Page 6 WEEKLY REVIEW Mar 7, 75 i Declassified in Part - Sanitized Copy Approved for Release 2012/01/09: CIA-RDP85T00875R001000080012-6 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/01/09: CIA-RDP85T00875R001000080012-6 The Chinese are not comfortable unless they are conducting some sort of campaign. Last year's anti-Confucius campaign was terminated prematurely after it led to widespread public disturbances. This year's exercise-a nationwide campaign to study the "theory of the dictator- ship of the proletariat"-seems in part to be an effort to correct last year's excesses. Peking has not made its goals in this study campaign entirely clear yet. Stricter enforce- ment of party directives, especially as they re- late to the troubled economy, certainly seems to be one of its purposes, but the door has been left open for possible new attacks on provincial or national leaders as well. The campaign was officially launched on February 9th with an editorial in People's Dally, the party's official paper. This artib le and others that followed called on everyone to study a new "Mao quotation" on proletarian d;~`. Lorship. Besides demanding stricter adhered: io party directives and an end to public disturbances, the articles continue the strong attack on a number of common economic practices the Chinese con- sider bourgeois. Cadre who tolerate these prac- tices are also criticized, but the tone is not vindictive. One article, however, by Chou Ssu, a pseudonym that suggests the views expounded in the article may be close to those of CluoL! En-lai, seems to warn cadre that they may be purged if they persist in their errors. The dominant themes of the campaign- improvinn curial order and production-are gen- erally associated with positions held by the more moderate elements in the nationri leader. ship, and these elements appear to be behind the current campaign. Production and transporta- tion problems almost certainly played a part in the curtailment of the anti-Confucius campaign last summer. One of the more intriguing aspects of the new campaign is a theoretical statement by Politburo member and leftist ideologue Yao Wen-yucn published in the latest issue of tie journal Rcd Flag, which is obviously meant to provide much of the ideological underpinning of the campaign. Yao pays somewhat less attention to economic issues than do most of the other mcjor articles and editorials associated wish the campaign, and elaborates on the new "Mao quo- tation" by discussing at length the disparities jr wage scales and living standards built into the Chinese political and economic system at the "current stage of socialism." In the opening phases of his argument, Yao strongly implies that these disparities can be exploited and intensified by secret enemies of communism nestled within the Chinese Commu- nist Party, thus suggesting that these anomalies must be eliminated, but the final third of his article strongly endorses the current emphasis on unity and order. Yao's strictures against "shrewd and crafty old bourgeois elements" who stay behind the scenes manipulating im- pressioriable youngsters may well be a veiled attack on those who attempte a to use the anti- Confucius campaign last spring to stir up trouble in the provinces. If so, it could be an attempt on Yao's part to disassociate himself from such people. Although an apparently unreconstructed leftist, Yao in both 1967 and 1965 attacked "ultra-leftism"; the 1967 article was, in fact, the first salvo in a movement that led tnree years later to the purge of Chen Po-ta, a leading civil- ian "leftist" associate of Yao's. The ambiguities contained in Yao's article have been present in the current campaign since it was first heralded at the National People's Congress by Chang Chun-chiao, a vice premier and Politburo standing committee member. The question of disparities in the wage scale and other aspects of China's economic system, for example, remains very mu--.h open. The new campaign could be used to reduce these dispari- ties, but it could also be used to defend these differences while China continues to develop and modernize its economy. The latter course was strongly sugnested by the publication of a series of selective quotations on "bourgeois rights" from the works of Marx, Engels, and Page 7 WEEKLY REVIEW Declassified in Part- Sanitized Copy Approved for Release 2012/01/09: CIA-RDP85T00875R001000080012-6 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/01/09: CIA-RDP85T00875R001000080012-6 Lenin, which occupied three of the four pages of a recent issue of People's Daily. In this ambiguous situation, the position of Mao himself is, as always, of great importance. The new "quotation'' could be interpreted as either an attack on "bourgeois rights" or a de- fense of them in the current Chinese context. In his article, Yao makes pointed reference to the practice of "waving the red flag to oppose the red flag"-that is, the practice of distorting pol- icy directives for factional political ends-an emotionally charged catch-phrase that was frequently employed during the Cultural Revo- lution. It is not clear, however, if Yao was referring to unnamed "enemies" who empha- sized the wrong themes in the current campaign or to those who attempted to exploit the fluid political situation last year. In the past several years, the Cnairman's concerns seemed to have centered on foreign policy, particularly on ensuring continued opposition to Moscow, and on ensuring that the political power of the military was firmly curbed It is not yet clear whether his attention has shifted to domestic matters in the aftermatt of the National People's Congress. In any event, he has been away from Peking for eight months, and he attended neither the congress nor the central committee plenum that preceded it. Moreover, in the past week he has failed to see two foreign visitors who normally would be accorded an audience. If Mao continues to remain inactive, questio,is regarding his status are bound to be raised in China, and officials are already attempting to minimize this incipient problem-without a r f success thus far. 25X1 Political meeting in Shanghai shipyard Page 8 WEEKLY REVIEW Mar 7, 75 Declassified in Part - Sanitized Copy Approved for Release 2012/01/09: CIA-RDP85T00875R001000080012-6 ? Declassified in Part - Sanitized Copy Approved for Release 2012/01/09: CIA-RDP85T00875R001000080012-6 CHINA-. MORE MISSILE BOATS TO STRAIT Stationing Chinese Communist ships in transit and helps keep open access to the South Sea Fleet area. sas near the strait provides protection for :nor Sin nr[T P'u-men-ch'eng Saniu-ao NOR rH VC[TNAMnan PEKNG ~c~viK { ?. 'r ~OAfL -~T a - ~ .+~~.fcH.ra\ UIRTH SEpr F MEET Shanghai SOUTH SEA !LEFT Chinese naval production conti cues to emphasize guided-missile patrol boats and sub- marines rather than large surface warships. Peking now :has about 135 guided-missile patrol boats in service. Annual production has in- creased substantially since 1969, reaching around 35 last year. 25X1 25X1 Page 9 WEEKLY REVIEW Mar 7, 75 Peking began stationing Osas at the Pu- men-che:ig naval facility more than a year ago. Since thiit time, the Chinese have been gradually adding Co their missile boat force in the strait area. The build-up of Osas obviously has aroused some concern in Taipei. Military leaders there consider that the deployment enhances Peking's ability to support military operations against the offshore islands and is a threat to Nationalist vessels plying the str:,lt. There is not necessarily any particular threat, however, as the deploy- ments are part of a cortinuing pattern of allocating missile boats to all three fleet areas to provide a more balanced defense along the entire coastline of Communist China. Declassified in Part - Sanitized Copy Approved for Release 2012/01/09: CIA-RDP85T00875R001000080012-6 Declassified in Part - Sanitized Copy Approved for Release 2012/01/09: CIA-RDP85T00875R001000080012-6 UK: VIQLSON CONFRONTS EC ISSUE Prime Minister Wilson faces a tough tight in Parliament and within his own Labor Party over the government's proposed referendum on the EC issue. Domestic political reaction to the guidelines for the referendum set out in the recent white paper has been largely negative. Wilson is still expected to coma out in favor of Britain's continued membership, but the outcome of the referendum-which will probably be held in June-pretty much hinges oi. how strongly he and his principal cabinet officers speak out it support. Both supporters and opponents of continued EC membership believe that at the moment the majority of voters oppose continued affiliation with the Community. The government's major proposals for the referendum are: part of the ruling Labor Party, wants the votes to be tallied in each of the country's 635 elec- toral districts so that each Member of Parlia- ment would know how his constituents viewed EC membership. Government leaders recognize that a single national count, on the other hand, offers the best hope for staying in the EC. Parliamentary debate will focus on the advisability of holding what would be Britain's first referendum and on the wording of the questi= . The Tories have said they plan a line- by-line debate, focusing on the cons' ' itutional question of whether the referendum encroaches on parliamentary sovereignty. The anti- marketeers opposed to the wording of the ques- tion, especially the term "stay in," prefer asking the electorate whether Britain "should be" a member of the EC. ? a simple majority will suffice to bind the government; ? votes will be counted centrally rather than by region or constituency; ? the referendum nuestion should read: "The government have announced the re- sults of renegotiation of the UK's terms of membership in the EC. Do you think the UK should stay in the EC?"; o an explanation of the results of the renegotiations and the pros and cons of continued membership will be mailed to each registered voter; ? limited government funds will be avail- able to both pro- and anti-market groups. The most contentious proposal promises to be the r.ethod of counting the ballots. Scottish aria Welsh nationalises want the votes counted regionally so that opposition to EC membership in their areas would be clearly defined and not lost in a national tally. They have threatened to hold the it own regional r,'felendoirt II the gov- ernment's national tally p'en prevails. The anti- m~:r: